Since its inception in 1971, Starbucks has been known for its high-quality coffee, which has helped it become the most popular and largest coffee shop globally.
However, over the last few quarters, Starbucks has struggled with continuous sales declines and slower store traffic, prompting it to develop a turnaround strategy to boost sales and regain the market share it once had.
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Growing competition, the unpredictable economy, and ever-evolving consumer trends have been some of the factors that the company has attributed to its slowdowns.
Related: Starbucks CEO announces major update on turnaround plan
To get business back on track and reclaim its throne as a top chain, Starbucks wants to outdo all competition by expanding its ready-to-drink beverage portfolio and entering the better-for-you category with two new product lines that can be enjoyed anywhere and anytime.
Starbucks enters the canned energy drink market
Although coffee is Starbucks’ (SBUX) specialty, the company has made an effort to diversify its offerings by introducing other non-coffee beverages, such as lemonades, refreshers, and teas, to its menu.
However, the newer generations are not as interested in coffee as the older generations are, opting for energy drinks as their beverage of choice when needing a pick-me-up instead of the traditional ‘cup of Joe.’
The energy drink industry is growing rapidly in the U.S., reaching $19.2 billion in 2023. Yet, it’s still projected to grow at around 8% yearly and be worth approximately $33 billion by 2030.
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To adapt to the ever-evolving consumer trends, the coffee giant has unveiled the new Starbucks Iced Energy, a sparkling energy drink that provides hydration and gives an energy boost without the unnecessary calories or sugar most competitors tend to have.
This new beverage comes in three fruity flavors: Blueberry Lemonade, Tropical Peach, and Watermelon Twist. It contains 160mg of plant-based caffeine and zero grams of sugar for a total of five calories.
“We always keep a pulse on the latest consumer trends and preferences to ensure we’re continuing to evolve our ready-to-drink Starbucks beverage portfolio to meet consumer demand,” said Starbucks Vice President of Americas Channel Development Jennifer Wong.
The new Starbucks Iced Energy is available at grocery and convenience stores, national retailers, and gas stations nationwide, as well as online.
Starbucks stays lean with the new Starbucks Frappuccino Lite
Starbucks introduced the Frappuccino to its U.S. menu in 1995, launching the classic Coffee and Mocha flavors. Since then, this beverage has become one of the most popular on the menu due to its smooth frappe texture and wide range of sweet flavors.
Because the Frappuccino has been such a lucrative menu item for Starbucks since its inception, it eventually released a bottled version only a year later and has expanded its reach by making it available at nearly all grocery stores nationwide.
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However, as delicious as Frappuccinos may be, they are full of sugar and calorically dense. Therefore, Starbucks decided to expand its offerings by developing a new, better-for-you version.
The coffee shop giant has launched the new Starbucks Frappuccino Lite, a new addition to its beloved bottled line. It still features its iconic coffee and sweet flavor, yet it contains no added sugars and only 100 calories per unit.
The new ready-to-drink beverage comes in three gelato-inspired flavors: Sea Salt Caramel, Creamy Vanilla, and Double Chocolate. All can be purchased at most grocery and convenience stores, national retailers, gas stations, and online.
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